The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-06-25
Mr.. Kineon Plainly Intimates that Majority
of the Directors Opposed an Investiga-
tion of the Affairs of the Fidelity.
Whiteley, Fassler and Kelley's Embar-
rassment Said To Be Only Temporary.
A Day of Panic and Great Excitement on the
New York Stock Exchange, Caused by
Bear Raid and Rumors of Gould's Death.
THE FIDELITY BANK.

Rumor that Harper Has Hid Large Sums OF
Money-Towns that Were NOt Caught.
Special to the Indianapolis journal.
CINCINNATI, June 24--There have been no
startling Developments in the Fidelity Bank
matter to-day. No new arrests were made. al
though it rumored last night that at least
one director would be arrested Harper and Hop
kins remained in JAIL although two bondsmen
had been found, and it is expected that three
others will be secured tomorrow. Said one or
the two to your correspondent, on Change. to-
day: 'It's q shame for these men to treat Har-
per so; they have all made plenty of money with
him and through him, and now when he needs
help they desert him. It's 49, shame"
Comptroller Trenholm was in the bank all
day, except for hour. when he visited the
Jail and saw Harper and Hopkins. He also had
the company of Joe Wiltshire for hour, and
that of Briggs Swift for as long time, and it is
supposed he gos much valuable information
from that quartet. 1t il expected that Mr..
Snyder, deputy comptroller, OF New York. will
be here tomorrow and be appointed receiver.
Briggs Swift says. to-day, that he thought the
depositors would not lose heavily rs they had
feared. A meeting Of bank creditors is called
for tomorrow morning Accountant Williams
said he Thought the failure not as bad as re-
ported He had access to the books Of the bank
for two DAYS.
number of attachment suits were begun TO-
edav by depositors, but it is not expected they
will do much good. There are persistent rumors
about Harper having secreted q large amount Of
money in ready cash, but they do not seem to
have any foundation. Harper keeps up the same
cool demeanor he has worn all the time, and
even Hopkins seems getting used to his trying
situation. They are made very comfortable at
the Jail, and have received scores Of visitors to-
day. Unless released tonight. they will be as
signed TO cells. like any other prisoners, and will
taste the bitterness of their transeressions
adulterased. The daughter Of Harper was this
evening reported seriously i'll from worry over
her fathers condition.
Late this evening the only sensation OF the
day came in the suspension OF Lewis Kennedy.
doing business as Lewis Kennedy Il Co.,
on Vine street, second. He was supposed
to be very solid and conservative; in fact ex-
ceptonally SO. The assets are put at 100000
mostly subject to chats,a mortgages, with labil
itles of sl5O,Oo0. It was the direct outcome OF
the broken wheat deal Kennedy had been
drawn into the wheat deal by Joe Wiltshire. and
had indorsed the latter's paper for $60 900 $7o
600, the Fidelity Bank discounting the notes.
Kennedy says he only an indorser, ard not
a factor in the deal. In May last he made state
ments that his business worth $3.50, 900 be-
yond liabilities. and his failure this evening
came like bombsheI in business circles and
will cause feeling of distrust One feature OF
the failure is the sudden and remarkable in
crease in deposits with building associations this
week, some of them receiving high as $e 900
last night. The price of real estate has also
stiffened
The Evening Post has dispatches saying the
banks in the following places have not been
caught In the Fidelity smash, nor were there any
individuals who deposited with the Fidelity:
Rushville Ind; Wilmington, o.; Parkershure.
W.. Va; Lima, O.; Washington. Ind; Chilli
Ashtabula. o.: GAINESVILLE. o.. Fremont, O.;
Steubenville, o.; Greenville, O.: Eaton, O.;
Fort Wayne, Ind; Evansville. Ind: Uhrichs-
nersville Ind; Wooster O.; Marysville, o.;
Flemingsburg, Ky.
Very many of the banks in these towns how
ever had been doing business with the Fidelity,
and withdrew their deposits at the time of the
circulation OF the anonymous letter attacking
the Fidslity's stability. Dispatches from twenty
five other towns show mostly small losses. in
one or two the losses ranging as high rs S.. 900,
with several in smaller sums
Sol p. Kineon, the whilom director who with
drew from the Fidelity some time ago because
Harper refused to show the banks collateral,
was to-day asked: How was it the directors
failed SO completely in obtaining any knowledge
of the state Of the bank7 How was information
kept from you.when you were direc.or7"
"Oh. they had way of doing it. suppose
it will come out when the courts sift matters"
'Yes but the directors omnipotent.
Why didn't you exercise your authortyp
s'Suppose majority of the directors were
against an examin a.ion-what then2'
After this significant statement. which means
a great deal, Mr. Kineon closed his lips It
would imply that some of the directors were
cognizant of the condition of affairs. and Of
what was being done, and stood in the way of an
Geo Hofer, of Joe Wilshires bondsmen,
said 81 don't suppose for an instant that any
thing can be done with Joe Wiltshire. He
couldn't get anything out of bank unless it was
given him by it's officers. and even If he did
overdraw his account with the bank. he could
have nothing to do with handing out the money
from the inside. In word, he was outside and
the others were inside. Whether he was running
a deal exclusively for Harper, or partly on his
own account, I don't know. He is probably
wanted to help clear things up"
The relations of Wiltshire and Harper to each
other and to the wheat deal are being earnestly
discussed. Both had all along denied having
anything to do with it, and neither has yet said
D word that will throw any particular ray of
light on the subject By inference. each points
to the other the principal. 1t is hard to be-
lieve that Harper was not the head and front of
it from the beginning; yet, when it is remem-
bered that Wiltshire transferred his property to
Harper az far back as Sept 16 last and in the
light of Louis Kennedy's statement, to-day, that
he had indorsed for Wiltshire there is some
ground to believe that at first, ar least, Wiltshire
was in it alone Harper says he was drawn into
it by taking care of Wishires overdraft for
s2s. 900.
The Fideiity's Temptations to Merchants.
During the last six months the Fidelity Bank,
of Cincinnati, made persistent efforts to induce